Will cryptocurrencies see a big rebound after the US election? Expert Hayes gives a prediction!
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BitMEX co-founder Arthur Hayes predicts that the cryptocurrency market is expected to rebound after the US election. In a recent discussion on the YouTube channel The Big Whale, Hayes mentioned the new changes in the liquidity of crypto assets, believing that this is mainly due to the relaxation of monetary policy by the Federal Reserve and other central banks.
What impact does liquidity have on cryptocurrencies?
Hayes pointed out that the recent increase in liquidity is good news for the cryptocurrency market. The Federal Reserve cut interest rates and adjusted its original tightening policy, creating a more favorable environment for high-risk assets. With lower borrowing costs, the government does not have to worry too much about curbing growth when stimulating the economy, especially when inflationary pressures seem to be controllable after the epidemic. Such a market environment may attract more funds to flow into the cryptocurrency field.
What are the risks of the election?
Although Hayes is optimistic, he also reminds that the uncertainty of the election may have an impact on risky assets in the short term. The election process may cause market turmoil, causing him to personally hold back on increasing his holdings of crypto assets in the coming months.
With increased liquidity, the outlook for cryptocurrencies is promising.
But the uncertainty brought by the election may temporarily slow down the market's rebound.
Hayes also expects that government spending will increase after the election, driving up the value of cryptocurrencies.
As the election approaches, Hayes advises investors to remain vigilant because the market may continue to fluctuate during this period. He believes that regardless of the outcome of the election, the rise in the value of cryptocurrencies after the election is reasonable, especially in the context of the Federal Reserve's interest rate cuts and increased government spending.
